(Credit: DOE)
Contributed by Bruce Stewart, CEO & President of Perch Energy
In the United States, the 44% of households that count as low-income face three times the average energy burden of other households. In certain parts of the country, as much as 30% of a family’s budget has to be spent on energy. Faced with such challenges, the electricity bill discounts that community solar energy provides can materially benefit disadvantaged households by freeing up money to be spent on other needs.
Community solar offers a great option to connect these frontline communities with clean energy and savings. Here’s how it can help – and what state and federal measures can do to further boost its positive impact.
Rooftop solar embeds energy inequities
Disadvantaged households stand to benefit significantly from solar energy’s electricity savings. However, physical and financial impediments block most lower-income households from traditional solar. Physically, the prerequisite that households must own their rooftops (and that those rooftops possess sufficient space) limits renters and apartment dwellers from participating. Financially, the upfront costs mean many would-be participants cannot afford installation, even if the investment would pay off over time. While loans are available, many disadvantaged households might either not qualify or want to commit to a decades-long agreement, especially if the financial benefit is delayed for several years.
Community solar opens access to clean energy savings
Thankfully, another option exists. Community solar enables anyone to access electricity savings, regardless of household income or housing type. Whether people rent or own, live in a five-bedroom house or a 200-square-foot studio, households can save 5-20% through electricity bill discounts. Certain governmental policies and programs are helping to make those benefits even more accessible.
How does community solar work? Subscribers throughout the utility area sign up for a “share” of an off-site solar farm project proportional to their electricity usage and receive a discount on their electric bill. After community solar savings appear—which usually takes at least one billing cycle—most subscribers see discounts of around 5-20% annually, depending on the state.
Three barriers to adoption
Even though disadvantaged communities stand to benefit from community solar, we often see three barriers to adoption: awareness, accessibility, and trust. Here’s how community solar providers and their government partners can promote these three pillars needed to succeed.
Awareness
Given community solar is a relatively new technology and option for customers, providers should partner with established channels to help potential customers understand that it exists, that signup is easy, and that it offers clear benefits. The Low Income Clean Energy Connector (LICEC), a new digital tool developed by governmental entities including DOE, the Department of Health and Human Services, the National Renewable Energy Laboratory, and the National Community Solar Partnership, aims to help disadvantaged communities access community solar through their existing interactions with relevant government programs.
For example, once LICEC goes fully live, households can 1) learn about community solar from local administrators of the Low Income Home Energy Assistance Program (LIHEAP), 2) sign up through the Connector for more information on available or upcoming community solar projects, then 3) subscribe with a servicer.
Accessibility
As more community solar projects come online, customers seek an easy, streamlined subscription process that involves minimal time. In contrast, low-income customers face greater demands. They must nav
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